Published by Tracy Kuelo
Tracy is Editor of SuccessField
1 year ago
Maybe you have an idea, or you’re just fascinated with the idea of launching and growing your own company. You’re willing to take some risks, like quitting your current job. But there is something that is holding you back: You don’t have enough money to start. Don’t worry you there are plenty of ways to start a business with no money.
Angel investors are wealthy individuals who back business ideas early in their generation. They typically invest in early stage or startup companies in exchange for an equity ownership interest. High-profile success stories like Uber, WhatsApp, and Facebook have spurred angel investors to make multiple bets with the hopes of getting outsized returns.
Venture capitalists are like angel investors, but are typically partnerships or organizations and tend to scout businesses that are already in existence. They either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets. Venture capitalists are willing to invest in such companies because they can earn a massive return on their investments if these companies are a success.
It’s popular for a reason: with a good idea and enough work, you can attract funding for anything. It is a way of raising finance by asking a large number of people each for a small amount of money. Until recently, financing a business was a very hard task. Thanks to the internet you can talk to thousands if not millions of potential funders. Typically, those seeking funds will set up a profile of their project on a website such as those run by our members. They can then use social media, alongside traditional networks to raise money. There are three different types of crowdfunding: donation, debt and equity. The most known crowdfunding platforms are Kickstarter and Indiegogo.
It is one of the most common forms of startup funding out there. Banks and independent investors might not want to risk money on you. But those who are close to you and believe in you might be willing to take a chance on your fledgling business. Don’t rule out the possibility of getting help from friends and family, even if you have to piece the capital together from multiple sources.